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Financial Statements ACC/561
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Purpose of Assignment 

This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company's liquidity, solvency, and profitability. 

Assignment Steps 

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials 

Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. 

Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past.

Research the company on the Internet and download the Income Statement, Statement of Shareholders' Equity, Balance Sheet, and Statement of Cash Flows.

Develop a minimum 700-word examination of the financial statements and include the following:

  • Determine the net income for the current fiscal year (FY). Is this income up or down from the prior year? 
  • Explain the relevance of changes in net income to investors.
  • Determine the ending balance in shareholders' equity. Why would organizations such as labor unions be interested in this?
  • Determine the total value of assets. 
  • Discuss the relevance of the total value of assets to potential creditors and why this is important.
  • Compute the return on assets. Discuss the relative profitability of the company based on your results.
  • Compute the working capital and current ratio. Evaluate the relative liquidity of the company based on your results.
  • Compute the debt to assets ratio and the free cash flow for your company. Analyze the results and comment on the relative solvency of the company.
  • Discuss how the financial statements are used in your current role or a position you would like to hold. How might these aid you in managerial decision making?

Show your work in Microsoft® Word or Excel®. 

Complete calculations/computations using Microsoft® Word or Excel®.   

Include the four financial statements along with your assignment.

Format your assignment consistent with APA guidelines. 

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Financial Statements ACC/561
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  • Submitted On 22 Feb, 2018 07:05:40
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Attached are the financial statements for Baylor Scott & White, below is the paper. Examination of the Financial Statements: Baylor Scott & White Financial statements play a major role within companies or organizations. These statements allow companies to keep track of the finances of the company. Many companies or organizations use four main financial statements: Balance Sheets, Income Statements, Cash Flow Statements and Statement of Owner’s Equity. In this paper, each of these tools will be defined in their role in the operation of Baylor Scott & White Healthcare. Additionally, Baylor Scott & White Healthcare (BSWH) will be examined and there will be a comparison the fiscal years of 2017 and 2016 in the net worth, income, assets, and working capital. BSWH current standing in profitability and debt to asset ratio will be looked over and the solvency of the company will be discussed. Finally, the use of finance statements will be compared in how my role as a Texas Peace Office is affected by their outcomes and results. Net Income for Baylor Scott & White Health The Dallas-based Baylor Scott & White Healthcare saw operating income and net income rise in the first quarter of fiscal year 2018, as revenue outpaced rising expenses throughout the healthcare system. According to Haefner (2017), the nonprofit hospitals chain’s operating income came in at $153.6 million as of September 30, 2017. Additionally, BSWH grew their revenue by nearly 4% in the first quarter of 2018 up to $2.3 billion, which is up from the reported $2.2 billion which was reported in the first quarter of 2017. BSWH first quarter revenue gains were partially credited to the new usage of the Scott & white Health Plan; by using their own version of insurance, BSWH’s success is a direct reflection of their decision to public exchange of insurance plans in 216, which cost them 42,500 members at the beginning of 2017. However, with everything that is ever changing, BSWH is not expanding for free: operating expenses are also on the rise by 2% from $2.1 billion in the first quarter of 2017 to $2.2 billion in the first quarter of 2018. With expansion of new hospitals, improvement of existing hospitals, and even the shutdown of smaller pieces of BSWH, the first quarter of 2018 showed a net income of $290.9 million, up nearly 60% from $182.1 million at the same time the previous year (Baylor Scott & White, 2018). When it comes to the ending balances in a shareholders’ equity, labor unions would be very interested in the results; members of unions are also shareholders in the company through their pension plans. An increase in stockholder’s equity is an indication that the value of the pension fund of members of labor unions is also increasing. Assets of BSWH Baylor Scott & White Health is one of the largest nonprofit healthcare systems in Texas. With total assets of $11.1 billion, it includes 50 hospitals, 7,800 physicians and 48,000 employees (Lagasse, 2017). Additionally, according to BSWH (2018), there are more than 1,000 patient access points, 187 satellite outpatient facilities, 25 ambulatory surgery center, 178 primary care clinics, 507 specialty care clinics, four senior health center, size urgent care clinics and 25 retail pharmacies. This information made available is crucial for investors and creditors; investors want to invest their money into a profitable business, whether or not it claims to be a “charity” or “nonp...
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